Nutanix (NASDAQ:NTNX) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Nutanix (NASDAQ:NTNX) posted its quarterly earnings data on Wednesday. The technology company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.49 by $0.11, FiscalAI reports. The firm had revenue of $757.08 million for the quarter, compared to the consensus estimate of $738.27 million. Nutanix had a negative return on equity of 38.96% and a net margin of 10.03%.The business’s revenue for the quarter was up 15.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.37 earnings per share.

Here are the key takeaways from Nutanix’s conference call:

• Strong FY2026 finish: Q4 revenue reached a record $757 million, while full-year revenue rose 12% to $2.85 billion and ARR grew 16% to $2.55 billion. Full-year free cash flow was $841 million, representing a 29% margin.
• External storage and NC2 gained momentum: Nutanix reported sharp quarter-over-quarter increases in bookings for external storage and its NC2 public-cloud offering, including several seven-figure deals. Management expects these offerings to be significant growth contributors in FY2027 by allowing customers to retain existing hardware or shift workloads to public clouds.
• Broadening product opportunity: The company cited strength in Kubernetes, database management, AI offerings, and partnerships with AMD, NVIDIA, major hyperscalers, storage vendors, and NeoCloud providers. Management expects cloud-native, AI, external-storage, and portfolio products to grow faster than the overall business, albeit from smaller bases.
• FY2027 outlook calls for continued growth: Nutanix guided to revenue of $3.18 billion-$3.23 billion, or 12% growth at the midpoint, with a 24%-25% non-GAAP operating margin and $850 million-$950 million of free cash flow. The forecast assumes elevated server lead times and prices throughout the year, along with a moderately higher mix of future-start-date orders and phased migrations.
• Supply constraints and restructuring remain headwinds: Management expects server prices to rise modestly and lead times to remain elevated in FY2027, potentially delaying customer projects. A restructuring affecting approximately 5% of the workforce will incur $33 million-$43 million in charges, while increased payment-plan flexibility may reduce the amount of cash collected upfront.

Nutanix Stock Down 1.6%

Shares of NASDAQ:NTNX opened at $65.39 on Thursday. The stock has a market cap of $17.68 billion, a price-to-earnings ratio of 68.83, a price-to-earnings-growth ratio of 4.25 and a beta of 0.60. The firm’s 50 day moving average price is $57.25 and its 200 day moving average price is $47.86. Nutanix has a fifty-two week low of $34.01 and a fifty-two week high of $82.42.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in NTNX. GW&K Investment Management LLC grew its holdings in Nutanix by 78.7% during the fourth quarter. GW&K Investment Management LLC now owns 981 shares of the technology company’s stock worth $51,000 after acquiring an additional 432 shares during the period. Itau Unibanco Holding S.A. lifted its stake in shares of Nutanix by 52.5% during the 4th quarter. Itau Unibanco Holding S.A. now owns 1,142 shares of the technology company’s stock worth $59,000 after purchasing an additional 393 shares during the period. Summit Securities Group LLC boosted its position in shares of Nutanix by 26.4% in the fourth quarter. Summit Securities Group LLC now owns 1,356 shares of the technology company’s stock worth $70,000 after acquiring an additional 283 shares during the last quarter. Wilmington Savings Fund Society FSB boosted its holdings in Nutanix by 135.3% in the third quarter. Wilmington Savings Fund Society FSB now owns 1,059 shares of the technology company’s stock valued at $79,000 after acquiring an additional 609 shares during the last quarter. Finally, CIBC Private Wealth Group LLC grew its holdings in shares of Nutanix by 26.9% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,556 shares of the technology company’s stock worth $80,000 after purchasing an additional 330 shares during the period. Institutional investors and hedge funds own 85.25% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on NTNX. Zacks Research upgraded Nutanix from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 27th. Needham & Company LLC upped their price objective on Nutanix from $55.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, May 28th. The Goldman Sachs Group reissued a “buy” rating on shares of Nutanix in a research report on Thursday, May 28th. Royal Bank Of Canada boosted their target price on Nutanix from $58.00 to $84.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Finally, Northland Securities set a $47.00 target price on shares of Nutanix in a report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $64.21.

Key Stories Impacting Nutanix

Here are the key news stories impacting Nutanix this week:

• Positive Sentiment: Quarterly earnings beat expectations. Nutanix reported adjusted EPS of $0.60 versus the $0.49 consensus estimate, while revenue reached $757.1 million, ahead of expectations near $738 million and up 15.9% year over year. The company also reported 16% annual recurring revenue growth and strong fiscal-year free cash flow. Nutanix Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Bookings momentum supports future growth. KeyBanc said Nutanix’s bookings are growing rapidly and argued that revenue should eventually catch up, a positive signal for forward demand. The company’s relationships with AMD and Nvidia also strengthen its positioning in AI infrastructure. AMD and Nvidia Partner Nutanix’s Stock Jumps After Earnings Beat. Why It’s Got Further to Go.
• Positive Sentiment: Analyst support increased. Rosenblatt Securities raised its Nutanix price target from $60 to $75 and maintained a buy rating, reinforcing the bullish reaction to the earnings report. Rosenblatt Securities Boosts Nutanix Price Target to $75.00
• Positive Sentiment: AI product expansion adds a growth catalyst. Nutanix introduced new controls for running production “agentic AI” workloads across hybrid clouds, potentially increasing demand for its cloud infrastructure software and reinforcing its AI strategy. Nutanix Expands Cloud Platform With Controls for Agentic AI
• Neutral Sentiment: Fiscal 2027 guidance was broadly in line. First-quarter revenue guidance of $755 million to $765 million was close to the $755.4 million consensus, while full-year revenue guidance was approximately $3.2 billion. This supports stability but provides limited near-term upside relative to expectations.
• Negative Sentiment: Valuation and execution risks remain. Nutanix trades at a high earnings multiple after a substantial run-up, and analysts have noted that hardware availability could constrain growth even as software demand remains healthy. Investors may therefore require continued strong bookings and revenue conversion to justify further gains. Nutanix Is Selling Plenty of Software. Growth May Cool as Hardware Stays Tight

About Nutanix

Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.

The company’s product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.